Seoul: OpenAI has entered into its first agreement in South Korea, partnering with the Korea Development Bank (KDB) to strengthen the country’s AI ecosystem. The partnership aims to support the development of AI technologies and foster Korean language-based AI models.
OpenAI in South Korea
The Memorandum of Understanding (MoU) between OpenAI, a US-based AI research company, and the state-run KDB marks a significant step for both parties. The collaboration is expected to boost South Korea’s AI capabilities and encourage innovation in artificial intelligence.
KDB Chairman Kang Seog-hoon emphasized the importance of the AI industry, stating that it will play a crucial role in determining national competitiveness. KDB plans to act as a coordinator to support OpenAI’s activities in South Korea.
Advancing Korea’s AI Potential
Jason Kwon, OpenAI’s Chief Strategy Officer, praised South Korea as a leading country in AI. He highlighted that the partnership aligns with the shared goal of advancing Seoul’s AI ecosystem. Through this agreement, the two organizations aim to accelerate the adoption of AI technologies and enhance local expertise.
The rise of AI technologies is also reshaping South Korea’s search engine market. A report by the Institute of Information & Communications Technology Planning & Evaluation revealed that local searches via Naver, South Korea’s top internet portal, have dropped significantly over the past nine years.
Naver still holds a dominant 57.32% share of the domestic search engine market for the first ten months of this year. However, global search engines, including Google, are gaining ground with a 33.9% share.
Impact of AI on Search Trends
The shift in search engine preferences is attributed to the rise of AI-powered technologies. OpenAI’s ChatGPT, released in 2022, changed how users interact with search engines by providing customized and summarized answers instead of simple information lists.
Foreign search engines like Google and Microsoft, which have integrated AI features, have seen significant growth in the South Korean market this year, challenging local competitors like Naver.
OpenAI’s partnership with KDB is a milestone in South Korea’s efforts to build a strong AI ecosystem. By focusing on innovative solutions and Korean language models, the collaboration will enhance the country’s global competitiveness in artificial intelligence. At the same time, the growing impact of AI technologies on industries like search engines highlights the transformative power of AI in reshaping user experiences and market dynamics.
